News Headline Summary
Stocks and bonds remain under pressure in Europe as markets re-price Fed QE tapering expectations and also fret over tight liquidity conditions in China which also resulted in an aggressive sell-off in domestic bank names...
- Over the weekend, the PBOC said that China's banking system liquidity is at a reasonable level and that China banks must control liquidity risks from credit expansion. In a separate report, the PBOC will not cut RRR or interest rates in near term, according to an unidentified PBOC official.
- Credit spreads are seen sharply wider and money market rates are higher, as uncertainty over liquidity conditions drives demand for USD.
- Yet again, the belly of the treasury curve bore the brunt of the sell-off and in Europe, German Bund is trading at levels not seen since April 2012.
- Industrial and basic materials sectors seen as worst performing sectors in Europe. Given the aggressive nature of the sell-off, a number of smaller Italian bank shares have been halted due to excessive volatility.
- COMEX copper down over 3% this morning, technically confirming the break of this years and October 2011 low. Of note, Goldman Sachs cut its China 2013 growth estimate to 7.4% from 7.8% and cut China 2014 GDP growth estimate to 7.7% from 8.4% (China roughly accounts for 40% of global copper consumption)
08:40, 24 Jun 2013 -
08:37, 25 Jun 2013
Stocks in Europe continue to march higher, with credit spreads tighter and financials outperforming as market participants focus on dovish comments made by hawkish Fed members yesterday...
08:35, 25 Jun 2013
**DAILY INSIGHTS OF INVESTMENT BANK AND BROKER RESEARCH NOW AVAILABLE IN ANALYST CHAT**
07:41, 25 Jun 2013
Despite the ongoing unwillingness by officials in China to boost liquidity, stocks in Europe are seen higher across the board, as market participants focus on dovish comments made by hawkish Fed members yesterday...
06:19, 25 Jun 2013
Having traded sharply lower overnight in Asia, Chinese equity indices stage a decent bounce, with market participants awaiting potential comments from officials from the PBOC and other banks who are attending Lujianzui Forum in China...
18:24, 24 Jun 2013
VIX now down 0.4% (after being up as much as 16% earlier in the session) due to the rebound in the S&P
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